Pexip (PEXIP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NOK 266 million, up 14% year-over-year, with ARR at USD 107.1 million, up USD 2.3 million sequentially and 8.5% year-over-year.

• EBITDA rose to NOK 36 million, up NOK 27 million from last year, and profit for the period was NOK 7 million, reversing a loss of NOK 19.2 million.

• Free cash flow for Q2 was NOK 68 million, with a cash position at quarter-end of NOK 587 million after a dividend payout of NOK 112 million.

• Strategic partnerships and product launches with Microsoft, Zoom, and HP Poly drove market expansion, especially in Connected Spaces and Secure & Custom segments.

• Major customer wins included contracts in defense, intelligence, automotive, and semiconductor sectors, reinforcing leadership in secure video solutions.

Financial highlights

• ARR increased by USD 2.3 million in Q2, reaching USD 107.1 million, with SaaS now comprising 50% of ARR.

• Q2 revenue was NOK 266 million, up 14% year-over-year, with adjusted EBITDA at NOK 36 million (14% margin) and profit after tax at NOK 7 million.

• Free cash flow for Q2 was NOK 68 million, and cash position at quarter-end was NOK 587 million after dividend payment.

• 12-month rolling EBITDA reached NOK 170 million, with a 16% margin; free cash flow over 12 months was NOK 190 million.

• Net profit for Q2 2024 was NOK 7 million, compared to a loss of NOK 19.2 million in Q2 2023.

Outlook and guidance

• 2024 ARR growth outlook raised to 8%-10% (from 5%-10%), and EBITDA margin outlook increased to 16%-20% (from 13%-18%).

• Q3 ARR expected in the range of USD 108-110 million.

• Medium-term targets remain: ARR growth above 10% and EBITDA margin above 20%, with high cash conversion.

• Market for enterprise-grade video communication expected to grow, with strong positioning for secure, interoperable, and flexible deployments.